RECESSION PROFIT SECRETS : MODULE 1 2

2 RECESSION PROFIT SECRETS : MODULE 1

RECESSION PROFIT SECRETS MODULE 1: THE GREAT CONSPIRACY


CONTENTS

INTRODUCTION ..................................................................................................................................................................... 5

PART 1: BUILDING THE FOUNDATIONS ......................................................................................................................... 6

WHY ECONOMICS? ...................................................................................................................................................................... 6

MONEY AND BANKING ................................................................................................................................................................. 7

EXAMINING MONEY .................................................................................................................................................................. 7

TYPES OF MONEY ........................................................................................................................................................................... 7

COMMODITY MONEY .............................................................................................................................................................. 7

MONEY SUBSTITUTES .............................................................................................................................................................. 7

CREDIT MONEY .......................................................................................................................................................................... 8

FIAT MONEY ................................................................................................................................................................................. 8

ELECTRONIC MONEY .............................................................................................................................................................. 8

BANKING ............................................................................................................................................................................................. 9

BACKGROUND ........................................................................................................................................................................... 9

NEGOTIATORS OF CREDIT ................................................................................................................................................... 9

ISSUERS OF FIDUCIARY MEDIA ........................................................................................................................................... 9

FULL RESERVE BANKING ........................................................................................................................................................ 9

FRACTIONAL RESERVE BANKING ....................................................................................................................................... 9

HISTORY AS A GUIDE .................................................................................................................................................................. 10

PART 2: THE RISE OF THE BANKING CARTELS .......................................................................................................... 11

RENAISSANCE BANKERS ........................................................................................................................................................... 12

THE BLACK NOBILITY OF VENICE ..................................................................................................................................... 12

THE HOUSE OF MEDICI ......................................................................................................................................................... 14

THE DUTCH INTERLUDE........................................................................................................................................................ 15

THE HOUSE OF ROTHSCHILD ........................................................................................................................................... 16

THE BATTLE FOR AMERICA ...................................................................................................................................................... 19

THE REVOLUTIONARY WAR ................................................................................................................................................ 19

THE FIRST BANK IN THE NEW REPUBLIC ....................................................................................................................... 21

THE SECOND BANK OF THE UNITED STATES ............................................................................................................ 22

THE BANK WAR............................................................................................................................................................................. 23

THE FEDERAL RESERVE ........................................................................................................................................................ 24

THE ROAD TO THE GREAT DEPRESSION .......................................................................................................................... 26

THE ROARING TWENTIES .................................................................................................................................................... 26

FDR ................................................................................................................................................................................................ 27

THE BANK OF INTERNATIONAL SETTLEMENTS (BIS) ................................................................................................ 29


THE BRETTON WOODS SYSTEM .......................................................................................................................................... 30

ESTABLISHMENT...................................................................................................................................................................... 30

ITS COLLAPSE AND THE END OF THE GOLD STANDARD..................................................................................... 31

PART 3: MANIPULATION AND MASTERY .................................................................................................................... 32

GOVERNMENT DEBT .................................................................................................................................................................. 32

BANKING OVERLORDS ........................................................................................................................................................ 32

CORPORATE RAIDERS ......................................................................................................................................................... 33

CORPORATISM ............................................................................................................................................................................. 34

INFLATION, DEFLATION AND THE BUSINESS CYCLE ................................................................................................... 36

PART 4: DESCENT INTO SLAVERY ................................................................................................................................ 38

THE ROAD TO CHAINS .............................................................................................................................................................. 39

WEALTH CONSOLIDATION ................................................................................................................................................ 39

CURRENCY DEVALUATION ................................................................................................................................................ 40

THE TAX RACKET ..................................................................................................................................................................... 41

BANKING SCAMS ......................................................................................................................................................................... 42

THE ART OF THE CON .......................................................................................................................................................... 42

CARTELS AND CARTELS ...................................................................................................................................................... 42

ATTACK OF THE CLONES ................................................................................................................................................... 43

A WORD FROM BUFFET ...................................................................................................................................................... 43

HSBC AND THE DRUG CARTELS ..................................................................................................................................... 44

THE FIX IS IN: THE GOLD AND SILVER PRICES ........................................................................................................... 44

BANKER BAILOUTS ...................................................................................................................................................................... 45

ENDGAME: NEO-FEUDALISM AND TECHNOCRACY ................................................................................................... 46

LOGICAL CONCLUSION ..................................................................................................................................................... 46

TECHNOCRACY ...................................................................................................................................................................... 47

SURVEYING THE BATTLEFIELD .......................................................................................................................................... 48


INTRODUCTION “We had to struggle with the old enemies of peace—

business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.

They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as

dangerous as Government by organized mob”

Franklin Delano Roosevelt

n September 2008, one of the world ́s largest investment banks Lehman Brothers filed for Chapter 11 bankruptcy protection after years of highly risky speculative investments finally caught up with them. The collapse of the bank would play a

central role in the precipitation of a global financial crisis that rocked world markets and adversely affected tens of millions of people worldwide. The actions that would be taken by governments and central banks around the globe to contain the crisis would prove to be unprecedented in their size and scope. The trillions in American taxpayer funded bailouts to private banks was championed in the press as having saved the financial system from total collapse. While this may be true on some levels, the events that played out revealed the close relationship between private megabanks and major governments, to a large segment of the population who were unaware or didn't care that such a relationship existed in the first place. We had entered the age of “too big to fail” and as former Attorney General Eric Holder infamously implied “too big to jail”. Millions of people were now awakening to the fact that big banks held great power in our society and their success (or failures) could directly impact them in a shocking and eye-opening manner.

Today for the most part there are no such delusions. The private megabanks since the crisis have proven to the global populace that they dominate the halls of major governments and the stability of the global financial system rests in their hands. In this book we examine the aims of this new power elite. We expose their criminality, their modus operandi, their command and control systems and what it means for the rest of us. The democracy and rule of law so prided by western civilization has been hijacked by ruthless international banking cartels that seek to empower and enrich themselves at the expense of the rest of humanity. Our society is being centralized into the hands of a parasitic financial elite and the window for many to escape the financial event horizon is closing. But before one can take action to not only insulate oneself but prosper in a financially uncertain future, one must understand the basics of the game and the attack profile of the enemy. For freedom and prosperity are the goal and the only foundation a civilization worth living in can be built upon.

I


PART 1: BUILDING THE FOUNDATIONS “Whoever controls the volume of money in our country is absolute master of all industry and commerce...when you

realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you

will not have to be told how periods of inflation and depression originate.”

James A. Garfield, 20th President of the United States

WHY ECONOMICS? Humanity's history has been a journey of discovery and a quest for understanding. The creativity and curiosity in our species saw us attempt to comprehend the nature of our environment and to eventually bring it under our control to use for our own purposes. As our species progressed from our humble hunter-gatherer origins to our current space faring status, our scope of social interaction grew from the tribal unit to a planetary scale. We are now able to interact and develop relationships with people from across the globe, often effortlessly with the aid of near instantaneous communication systems. This interconnectedness has enabled trade between nations to flourish to the extent that a typical bag of groceries purchased from a standard western supermarket chain may contain products from as many as six continents.

Behind all those interactions are exchanges. Be it information, goods, services or emotions, exchanges are what fuel interactions. Economics is the study of exchanges. These exchanges encompass the typical exchanges in the traditional marketplace where the buyer acquires a product or service from the seller using a medium of exchange such as money. Economics also covers the barter system where goods or services are traded directly without the use of a medium of exchange. The study of economics is centered around the actions of real people and the attempt to explain how they make exchanges.

Our current civilization is so complex and multifaceted that the economic analysis of a single city is mind-blowing in its scope. Understanding the economics of our civilization can give one a significant advantage in the marketplace of ideas. Having a firm grasp of basic economics will help you make better decisions in your day-to-day life and recognize the damaging consequences that government policies can have on a society.


MONEY AND BANKING EXAMINING MONEY What is Money? Money is a commonly used medium of exchange that helps facilitate the exchange of goods and services. Its main function is to make the transaction process easier than under the barter system. Humanity has a long history with money and it has taken various forms over the millenia including shells, stone wheels, tobacco and of course gold and silver. Money’s use as a measure of value facilitated the growth in trade as it was more advantageous than the barter system which presented significant drawbacks. The most developed societies were prone to using precious metals as a medium of exchange due to their valuable physical characteristics which include durability, divisibility, malleability, ascetics, ease of transport and scarcity. Historically, gold and silver rose to prominence because they were cumulatively chosen in the free market as the preferred medium of exchange rather than forced upon traders by a royal edict. Money can take many forms when chosen by the free market, an example being the well-known role that cigarettes play in prisons today.

TYPES OF MONEY COMMODITY MONEY The adoption of money can be a gradual process where the market participants have to increasingly use the chosen commodity as a medium of exchange until it gains widespread use. The commodity may be silver, gold, iron or copper but the mutual understanding and acceptance of it by the traders is what gained it purchase as an accepted medium of exchange.

MONEY SUBSTITUTES These are certificates or notes that are redeemable for actual money that is stored in a bank. The owner of the notes may present them at any time and receive the represented amount in actual money. Their use became widespread in Europe during the 12th Century Crusade era after the Knights Templar established an international banking network that stretched from the Levant to London. It was much safer to deposit gold or silver in a European Templar Bank and receive a money certificate which could be redeemed in Jerusalem, than travel with precious metal on hand on the hazardous journey.


CREDIT MONEY This is a financial instrument that was created for use in indirect exchanges. Its value is derived from the promise of redemption in the future. This kind of money can take the form of a promissory note or an IOU (I Owe You) where the debt issuer must be in good standing with the recipient for acceptance of the note.

FIAT MONEY Fiat money or paper money is money that has been declared legal tender by government fiat. This paper money has no intrinsically value and is used as a medium of exchange with a storable function.

This is the state of almost all modern-day currencies including the U.S dollar. The dollar is issued by the nation's central bank called the Federal Reserve. The common misconception about the bank is that it is a government bank. It's not. The bank is a privately-owned corporation that issues the currency and loans it to the government, at interest. The majority of the dollars in circulation are issued by private banks within the Federal Reserve System, that create dollars when a loan is issued. The banks create the money out of nothing and loan it out, creating a debt with every issue.

Every dollar issued by the Federal Reserve System creates a dollar of debt, plus interest, that must be paid back to the private banks. So, if the borrowers paid back the private central bankers everything they borrowed, there would be no dollars in circulation, and they would still owe interest on the debt.

ELECTRONIC MONEY This is money that is purely electronic in nature. Under this category you will find cryptocurrencies such as Bitcoin. This type of money is currently in its embryonic stage historically speaking, but its growing global use in the free market may see it rival traditional options in the near future.


BANKING BACKGROUND Banking can be divided into two separate branches. Austrian economist Ludwig von Mises described them as “the negotiation of credit through the loan of other people's money and the granting of credit through the issue of fiduciary media, that is, notes and bank balances that are not covered by money”.

NEGOTIATORS OF CREDIT This banking activity involves the lending of other people's money. In order to turn a profit, the bank borrows money from the depositors, paying them interest, and then lends it out at a higher level of interest, pocketing the difference (minus expenses).

ISSUERS OF FIDUCIARY MEDIA In an oversimplification the bank issues credit to debtors that are not covered by the bank's deposits. The banks figured out that they could lend out more money than they had in hand as long as they always kept enough in reserve to handle the demand for physical money.

FULL RESERVE BANKING In this banking practice the full amount of customer deposits are kept in highly liquid reserves and are available for depositor withdrawal upon demand. So, in practice the bank would not lend out deposits which are available for immediate withdrawal but only lend fixed term deposits that were only available for withdrawal at a future date.

FRACTIONAL RESERVE BANKING Under this banking practice the bank would only retain a fraction of the amount of customer deposits in reserve and lend out the rest in the hope of maintaining sufficient reserves to handle the typical amount of redemption claims. This practice allows the bank to expand credit in relation to actual money by increasing the number of promissory notes on the market. This banking practice grew to replace full reserve banking during the 18th Century with the rise of the Rothschild banking dynasty.


HISTORY AS A GUIDE In order to understand how the international bankers have gained such powerful influence over the world economy we must look at the history of banking. The world economy to a great extent is dependent on the flow of credit that facilitates planetary transactions. Control over this flow of credit would grant the controllers great power over the economy, its composition, direction and stability. Humanity has a long banking history and to be able to understand the modern economic landscape we must look at historical examples of banking operations.


PART 2: THE RISE OF THE BANKING CARTELS “Give me control of a nation's money and I care not who

makes the laws”

Mayer Amschel Rothschild (1744-1812), Founder of the Rothschild Banking Cartel


RENAISSANCE BANKERS

THE BLACK NOBILITY OF VENICE Venice was known as the Serene Republic but it bore little resemblance to the American Republican system. The geographically small republic was dominated by oligarchical rule for more than thirteen centuries; from its traditional foundation in the early 5th century when the Western Roman Empire was succumbing to the Visigoths, through to its fall during the Napoleonic Wars at the end of the 18th century. It grew to become a major trading power through its maritime trade system which first flourished under the Byzantine Empire (Eastern Roman Empire) which afforded it special trading rights and privileges, before emerging under its own sovereignty after the sack of Constantinople, the Orthodox Christian capital city of Byzantine Empire, in 1204 during the Fourth Crusade (a move engineered by the Venetian oligarchy) whereupon they installed a puppet emperor subservient to Venice. Constantinople was the wealthiest city in Europe at the time and the spoils of war brought back to the Republic represented the greatest haul seen on the continent to that date.


The handful of families that ruled the Republic cemented their dominance through the establishment of private banks that issued and held the debt of the Republic. This in practice meant that there were many private central banks that the Republic became indebted to as opposed to the one bank under the modern American Federal Reserve System. Byzantium was targeted for conquest not just for control over trading routes but to eliminate a rival to the Venetian currency called the ducat. With the coup complete, the Serene Republic proceeded to shut out their main trading rivals Pisa and Genoa from the lucrative Byzantine trading markets and the ducat grew to become an international standard for currency exchange, granting great influence to the Venetian bankers that controlled it.

The Venetian banking families that comprised part of the oligarchical nobility operated some of the wealthiest financial institutions on the planet and became financiers to heads of state. Through usurious loans the Venetian bankers began looting vast swaths of Europe, the most prominent of which being Henry III ́s England whose 13th century foreign wars had racked up huge debts with the bankers charging interest rates exceeding 100 percent. With a monopolistic trading advantage in the Byzantine Empire secured and its growing international banking network of indebted nations the Republic grew to become a major world power in the proceeding centuries.

The Republic ́s power began to wane after the fall of Constantinople in 1453 to the Ottomans led by the 21-year-old Sultan Mehmed II. This precipitated the collapse of the remaining Roman Empire that was the bulwark against the Ottoman threat. Establishing the captured city as his new capital the young Sultan initiated a new era for the Ottoman Empire that would grow to threaten the existence of European Judeo-Christian Civilization. Ottoman armies would reach as far as the Italian Peninsula and the gates of Vienna. The Ottoman conquest of Constantinople created a flood of refugees into Europe, including some fleeing with books that contained accumulated knowledge of ancient civilizations, a portion of which eventually found their way into the hands of a prominent Florentine banking family, the Medici.


THE HOUSE OF MEDICI

The Medici family settled in Florence during the 13th century, part of a flood of migrants who were flocking to the thriving city-state. The family grew from poor wool farmers to become one of the wealthiest and most powerful in Europe, establishing an international banking network that funded nations and a political dynasty that ruled Florence for the majority of the Renaissance period, producing four Popes and two Queens of France.

The family entered the banking practice during the mid-13th century after a vacuum was created in the market due to a severe economic depression during the 1340 ́s and the Black Plague that killed nearly a third of Europe's population. The Medici banking enterprise's early success saw them open several branches on the Italian peninsula. The true success and international expansion came when the family became papal bankers in 1421. The Medici bank headed by Cosimo de Medici expanded its international operations, opening new branches in England and Spain and continued to cultivate alliances with actors of international import, building a valuable information network.

His son and successor Lorenzo de Medici, commonly called “Lorenzo the Magnificent”, further expanded the banking operations and succeeded as the political leader of Florence cementing a dynasty that had neither birthright or title. Most importantly, Lorenzo successfully bought his thirteen-year-old son Giovanni a cardinal’s hat. He would later ascend to the throne of St. Peter as Pope Leo X, elevating the family to even greater heights.


A Medici Pope ensured that the lucrative papal account remained firmly in the family ́s control but arguably the greater prize was the political standing that came with the papacy. It enabled their descendants to make dynastic marriages that eventually saw a Medici daughter marry a second son of the French King and as a result of untimely deaths led to her ruling the French Kingdom. The Medici from humble beginnings used their banking wealth and political acumen to establish a powerful dynasty that grew to rival the royal European families.

THE DUTCH INTERLUDE

The 16th and 17th centuries were a Golden Age for the Dutch economy. It boasted a vibrant international trading network with Antwerp serving as the commercial capital of northern Europe for the first half of the 16th century. However, the Dutch Revolt in the Spanish ruled south felled the market dominance of Antwerp and displaced many merchants who relocated to the northern cities such as Amsterdam creating a new boom. The northern cities were soon thriving and saw the development of joint stock holding companies and a formal stock market. This was the age that corporations began to amass powers to rival kingdoms and produced one of the wealthiest corporations in world history in the form of the Dutch East India Company.

The thriving merchant trade created opportunities for investment which naturally attracted the attention of bankers looking to capitalize on the new power in the world. The banking houses that grew around the prosperous cities amassed great wealth with speculation playing no small part. Some of Venetian banks had also moved their main base of operations into the Low Countries in large part due to their own machinations in empowering the Ottoman Empire via the weakening of Byzantium, which allowed Venice to be repeatedly embroiled in wars with the ever-expanding Ottomans.


The major turning point in this historical period was the ascendance of the Dutch ruler William III of House Orange-Nassau to the English throne in the Glorious Revolution in 1688. The bankers that financed William III established the Bank of England in 1694 which was privately owned by shareholders. The Bank was granted the exclusive power to issue bank notes and government bonds allowing it control the nation's finances. With this weapon the monarchs of England raised great sums to finance their continuous succession of foreign wars to the detriment of the taxpayer. As a result, the nation's debt expanded greatly in the ensuing years much to the benefit of banking cartels whose profits were astronomical. The Bank of England would become the model for future central banks.

The banking cartels in their conquest of England had finally secured a base of operations that had an advantageous geographical position and a people that possessed military and intellectual prowess. The bankers would use the nation to help build an empire upon which the sun never set.

THE HOUSE OF ROTHSCHILD

Roots

The most illustrious family in world financial history is that of Rothschilds. The German Jewish banking dynasty began with Mayer Amschel Bauer[3] in Frankfurt during the 18th century. Mayer after rising through the ranks at the Hanover-based Oppenheimer banking firm became the key financial manager of William IX the Landgrave of Hesse-Cassel, who was one of the richest men in Europe, having derived his wealth from the leasing of Hessian mercenaries.


Foundation

When William IX lands were overrun by Napoleon’s troops he fled to Denmark and left a considerable portion of his great wealth under the care of Mayer. Sources say this wealth was embezzled by Mayer and used to establish his own bank. Mayer forwarded the stolen capital to son Nathan in London where he set up N.M. Rothschild and Sons. Mayer had already cultivated an international network of contacts during his tenure as William IX financial manager granting him access to an information network that would soon reap rewards for the family. Using strategic investments Mayer was able to increase the family wealth exponentially as Europe became engulfed in the Napoleonic wars. The Rothschilds to different degrees were financing both England ́s Wellington led army and Napoleon’s Grande Armée ensuring that regardless of the outcome the Rothschilds would stand to profit.

Emerging Actor

Mayer died in 1812 and leadership of the family passed to Nathan who despite being the third oldest son of five was considered the most capable by his brothers. As the war reaped profits for the family they opened up branches around Europe (Frankfurt, London, Paris, Naples, Vienna) with each of the five brothers heading up one. However, the ploy which cemented the Rothschild legend and catapulted them to the financial heights of the world came at the close of the Napoleonic wars during the Battle of Waterloo.

Major Actor

On June 18th,1815 as Napoleon watched his army succumb to a British-Prussian pincer attack, a Rothschild agent was able to quickly carry word of Napoleon’s defeat to Nathan in London several hours before official channels. Nathan, armed with this vital piece of intelligence devised a plan and proceeded to London Stock Exchange where he had allowed rumors to spread that Napoleon was victorious. Offloading his significant holdings, he initiated a wave of panic selling of stocks and government securities causing prices to plummet. When the majority of the selling had passed Nathan proceeded to buy up the securities and a considerable portion of the British economy for pennies on the pound. As the news slowly trickled in of Napoleon’s defeat, stocks soared and the Rothschild wealth skyrocketed. With Napoleon’s defeat Britain was now the dominant power in Europe and Nathan Rothschild was the power behind the throne. In the proceeding years the Rothschilds were also able to gain control of the privately-owned Bank of England. The sun never set on Britannia’s holdings.


Rothschild Financial Formula

The Rothschild ́s realized that they could lend out far greater sums than they held in reserve as people would deposit real wealth into bank vaults in exchange for certificates of deposit. When account holders would transfer wealth to other accounts within the same network, it would often require little or no immediate withdrawal of physical money from the bank as the new holder would typically accept a receipt of deposit. The Rothschild ́s calculated how much capital on average was actually required in tangible form in the bank’s vaults to meet demand and held this in reserve. The bank was then able to issue loans in quantities greatly exceeding their reserves on hand as mostly promissory notes were exchanging hands. This is the practice of fractional reserve banking.

The quantity of promissory notes in circulation would then create overconfidence in the market and the banker would proceed to create scarcity in the money markets by calling in loan obligations, allowing him to seize any collateral on defaulted loan contracts. This cycle would be continually repeated consolidating wealth and gaining influence. With a powerful international banking network, the Rothschilds could control the liquidity of currencies and use the pressures of economic crises to start wars and help determine the outcome by deciding which belligerent would have access to adequate capital.

Wars are extremely good business for the banking cartels as they are enormously expensive and as the debt grows, the nation and its politicians become more subservient to the creditors. If a nation ́s ruler chooses to renege on his obligations, the banking cartels would simply fund his enemies and collect their due via this route.

The Emerging Threat

The Rothschilds consolidated their power in Europe during the 19th century and sought to keep as much of the wealth within the family by arranging marriages between cousins, before having to branch out in later years for strategic alliances with other banking and royal houses. They expanded their banking network across the continent creating an international cartel which slowly gained control over the governments they were funding. However, across the Atlantic a new Republic had formed out of the former British North American colonies and it was set to become an “Empire of Liberty”. The embryonic Republic did not have a privately-owned central bank controlling the issuance of its currency, in fact its constitution guaranteed that its Congress would control their currency. This was a threat to the debt enslavement system operated by the Rothschilds and could not be allowed to stand.


THE BATTLE FOR AMERICA

“The Central Bank is an institution of the most deadly hostility existing against the principles and form of our

Constitution”

Thomas Jefferson, 3rd President of the United States

THE REVOLUTIONARY WAR

The Spoils of War

The American Revolutionary War was a watershed moment in history, one in which a ragtag band of provincials led a successful campaign against the professional soldiers of the greatest empire on Earth who went on to defeat Napoleon a few years later. However, the long war had been won at great cost. The Republic's finances were in shambles due to the Continental Congress and the individual states increasing the total money supply by over 2000% conservatively over the course of the war, causing rampant inflation.


This was exacerbated by the economic warfare conducted by the Bank of England whose agents flooded the market with counterfeit currency during the war, while American maritime trade was continually hampered postwar by the vengeful British who still ruled the waves.

Banking Debate

At war’s end some states were deeply in debt and a faction of the founders led by Alexander Hamilton supported the establishment of a national central bank that would absorb the states´ debt into a national debt. The fiscally responsible states which were not in debt were predictably against such a proposal, while opposing factions feared that it would create a creature too powerful and too indebted to a moneyed aristocracy. They also feared that speculators would run riot in the fragile nation causing artificial booms and busts. The colonies had already experienced the economic devastation that had come when in 1764 the Bank of England restricted the colonies from issuing their own interest free currency, the colonial script, and forced them to issue bonds at interest which were then to be sold to the Bank of England in exchange for English money, causing unemployment to skyrocket in the following years.

Benjamin Franklin gave the following explanation for colonial prosperity in the to the British Parliament in 1763:

“In the colonies we issue our own money. It is called colonial script. We issue it in proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own money, we control its purchasing power, and we have no interest to pay anyone.”

As a result, going into the 1787 Constitutional Convention there was a solid majority vehemently opposed to fiat currency, fearing that a federal government would eventually abuse this power and reduce the purchasing power of the money to the detriment of the people. Many urged that gold and silver should be the only specie of money.

Article I Section 10 of the Constitution produced at the Convention expressly prohibited the states from issuing money or bills of credit that were not gold or silver and the Tenth Amendment blocks the federal government from assuming powers not delegated to it in the Constitution, thereby prohibiting it from issuing fiat currency.


THE FIRST BANK IN THE NEW REPUBLIC Inception

The proposal for the Bank of the United States was put before Congress in 1790 by the Secretary of the Treasury and banking champion Alexander Hamilton. The bank was modelled on the Bank of England and sought to circumvent the pesky Constitution that prohibited Congress from creating money, by having this privately-owned bank create money out of thin air and lend it to the federal government who would then ensure that the citizenry would accept the bills of credit as money. This action was vehemently opposed by the then Secretary of State Thomas Jefferson and helped developed one of the most potent political rivalries in American history that eventually led to the establishment of the opposing camps of Federalists (Hamiltonians) and anti-Federalists (Jeffersonians), sowing the seed of party politics.

Under the proposal, 80% of the bank's capital was to come from private stockholders and the remaining 20% from the federal government. Hamilton and the moneyed interests he represented argued that in order to create national unity, the wealthiest in society would need to have a vested interest in the success of the nation and this could be achieved by having them invested in the national debt via this bank, which he argued would be a good thing. Jefferson was incensed at the notion and argued that Congress creating such a bank was unconstitutional and would lead to the elevation of a moneyed aristocracy that would encourage the creation of ever larger debts and a speculative environment that would lead to national demise.

Establishment

In the Congressional battle between these two sets of ideals, the Hamiltonians were triumphant and Congress granted the bank a twenty-year charter in 1791 and despite heavy pressure to veto it President Washington signed it into law. The Bank was now the depository of federal funds and secured a monopoly on the issuance of bank notes and though it was still required under law to redeem the value of the notes upon demand in the nation's only legal tender, gold and silver, it was not obligated to have the full reserves on hand allowing for fractional reserve lending practices.

History Repeats

The bank created millions of new dollars via the fractional reserve system, the majority of which was spent by the government causing the prices of goods and services to rise dramatically and the value of the dollar to fall precipitously due to the oversupply of money. The fallout in the proceeding years was identical to the results of previous inflationary experiments; the only major difference was the reserve requirement of gold and silver which limited the extent to which the bank could inflate the currency. Meanwhile, the bank ́s private shareholders profited handsomely.


Decline and Fall

The bank ́s unpopularity grew over the course of its charter with strong opposition from both sides of the aisle. The Jeffersonian faction continued their opposition on the constitutional grounds previously covered, while the speculators and moneyed interests wanted even looser monetary controls that would allow greater currency inflation without the limitations of gold and silver reserves. Land speculation was a favorite at this time in American history as the nation was expanding and speculators could make a quick buck purchasing and offloading promising land tracts.

The forces marshalled by the bank ́s opponents during its first couple of decades culminated in dramatic fashion when the bank's charter renewal vote was defeated in 1811 by a singular vote in both the House of Representatives and the Senate, sealing its fate.

THE SECOND BANK OF THE UNITED STATES Resurrection

The war of 1812 saddled the Republic with massive public debts and the agents of the banking cartels relentlessly and unabashedly secured the votes required for the institution of a new bank charter. The anti-bank opposition struggled hard against the tide but the forces proved to be too overwhelming, the fiscal situation too daunting, the banker establishment “bonuses” too enticing. So, despite President Madison ́s several attempts to veto the Bank bill, he eventually relented and it passed in 1816 with a twenty-year charter. The proceeding years were to follow an all too similar pattern.

The Panic of 1819

As soon as the bank opened its doors it immediately fired up the printing press and begun issuing huge loans to the federal government and increasing the national money supply, which went on to fuel inflation and speculation in many areas of the country; particularly in the expanding western states where several banks had popped up and issued loans to land speculators that they couldn't possibly cover in gold and silver. This abundant flow of money throughout the country created an artificial boom in asset prices and actually did facilitate trade and commerce to a great extent bringing prosperity to many areas. However, reality was about to set in as the bankers that controlled the central bank tightened the national money supply triggering a wave of defaults and bank closures causing a severe depression. This precipitated a collapse in western land prices as speculators and investors who were not “in the know” failed to make good on their debts enabling the bankers and other insiders to buy up these tracts of land and other valuable assets at fire sale prices.


The banker’s tool of creating artificial booms and busts had reaped rewards again and they were gaining ever greater control over the economy.

Opposition Rising

The resulting depression lasted nearly five years and was so severe that unemployment became widespread festering a great deal of resentment and social unrest among the populace who wanted targets to direct their anger towards. One of those so incensed by the machinations of the central bankers was a war hero of the last Anglo-American war and represented Tennessee as a senator but harbored even greater political ambitions. His name was Andrew Jackson.

THE BANK WAR

“You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out!”

Andrew Jackson on the Central Bank


President Jackson waged war on the Central Bank during his two terms. At the tail end of his first term he vetoed an early recharter of the bank condemning it as an unconstitutional monopoly beholden to foreign interests and a nefarious vehicle to enrich a tiny economic elite at the expense of the working American citizen. However, the death blows were dealt during his second term when he began withdrawing government funds from the bank in 1833 in preparation of its charter expiration in 1836 and placed them in various state-chartered banks instead. The enraged private bankers countered by deliberately engineering a recession in 1834 by calling in loans and tightening the nation's money supply causing a wave of loan defaults. The bankers hoped that an irate people suffering economic hardship would force the administration to capitulate and recharter the bank but this attempt failed and its charter elapsed in 1836.

By reducing the size of the federal government and preventing it from incurring new debts from the private central bank currency issuance scheme, Jackson was able to completely pay off the national debt in 1835, becoming the only President to ever do so. His actions against the banking cartel's efforts to seize control of the Republic were so devastating that it would take them nearly 80 years to establish another private central bank.

THE FEDERAL RESERVE Setting the Stage.

In 1907 the Republic experienced a financial crisis and a severe recession known as the panic of 1907 or the Knickerbocker Crisis. In the preceding years the bankers had artificially inflated the stock market by making loans abundant, enabling them to cause a crash when it suited them by tightening lending. The crisis was engineered by the New York based banking cartels, chief among them J.P Morgan, who purposely caused the collapse of the United Copper Company which threatened the stability of its creditors. The resulting uncertainty triggered a series of bunk-runs by concerned depositors, wiping out the reserves of many banks. When the banking system had become paralyzed and social outrage was at its peak, the fabulously wealthy J.P. Morgan used his own capital to restore faith in the banking system, convincing others to do the same, restoring stability in the system.

The goal of this scheme was a simple one. Create a banking crisis that would hit the public (who were wary of big banks) hard making them susceptible to accepting a “reform” of the banking system that would of course entail a new private central bank to prevent such crises from repeating. Problem, reaction, solution. A formula we have seen the bankers use time and time again.


Jekyll Island

In 1910 the representatives of the banking cartels met in secret on Jekyll Island off the coast of Georgia to plot seizing control of the American banking system in a way that would be acceptable to the public. Attendees were:

• Paul Warburg - MM Warburg of Hamburg (Germany) and Kuhn & Leob (U.S) • Henry P. Davison - J.P Morgan partner and Chairman of Bankers Trust

Company • Benjamin Strong - Vice President of Bankers Trust • Charles Norton - President of First National City Bank • Frank Vanderlip - Chairman of National City Bank • Senator Nicholas Aldrich - John D. Rockefeller ́s (Standard Oil) Father-in-law

The self-described conspirators led by the German born Paul Warburg formulated a new central bank based on European models and was to have the false appearance of regional banking system, while the real power lay in the New York branch. The name eventually chosen was the Federal Reserve in order to fool the public into assuming it was a government institution and not a private banking cartel. This new central bank, like its predecessors, would issue currency and loan it to the government with interest.

The Federal Reserve Act

Jekyll Island conspirator Senator Aldrich led the National Monetary Commission which was established in the wake of the 1907 panic. The Commission published a series of reports on the American banking system between 1909 and 1912, culminating in a final report that recommended a plan that looked suspiciously like the private central banks of the country's past. Public sentiment was against the plan and many were suspicious of Senator Aldrich and his ties to the financial and industrial elite dominating the economy. Recognizing the taint represented by the Aldrich name the bankers incorporated the main tenets of the plan into the bill called the Federal Reserve Act. The Wall Street banking cartel led by J.P Morgan opposed the bill publicly to create false opposition from the bankers the bill was supposed to be “regulating”.

Many weren't fooled and the opposition to the bill in Congress was led by Representative Charles Lindbergh of Minnesota who warned that it created the “most gigantic trust on earth” and was a deadly threat to the Republic ́s free enterprise system. However, the banker backed Democrats controlled both Houses of Congress and deliberately obfuscated the bill ́s contents enabling them to get the bill passed through the House of Representatives and the Senate under the opaque names the “Glass Bill” and “Owen Bill” respectively. Many representatives admitted that they were unaware of the bill’s contents.


President Woodrow Wilson was an idealist who had previously written about the danger posed by the powerful financiers that formed the money trust. However, he was deficient in economics and the nature of banking which allowed him to be misled by the Wall Street bankers. The bankers ́ behind-the-scenes machinations engineered the Federal Reserve System and Wilson through his ignorance thought that the banking legislation was designed to contain the financial houses he had warned of years prior. So, when the Federal Reserve Act was brought to his desk on 23rd December 1913, he signed over the Congressional power to issue currency to largely foreign owned private banks. Wilson would later come to regret his decision and begged the nation's forgiveness stating that he was expertly tricked by the financiers into supporting their aims but it was too late.

THE ROAD TO THE GREAT DEPRESSION

“It is well enough that people of the nation do not understand our banking and monetary system, for if they

did, I believe there would be a revolution before tomorrow morning”

Henry Ford, Founder of Ford Motor Company

THE ROARING TWENTIES After the Great War America longed to “return to normalcy” and focus on internal improvements instead of the never-ending wars in Europe. During the 1920´s the Federal Reserve kept interest rates artificially low and loosened monetary policy, facilitating cheap loans which fuelled investment and speculation. This cheap money fuelled a rise in asset prices and the stock market ballooned to ever greater heights, cheered by the “experts” in the financial press. Dreams of getting rich suckered many people into artificially inflated stocks whose vitality lay at the mercy of a handful of men who controlled the nation's central banking system. The insiders meanwhile were positioning themselves for an engineered crash that would allow them to swoop in and vacuum up valuable assets at fire sale prices.


The stage was set in 1929 when the market was at its peak and stock mania was reaching hysterical levels. The Federal Reserve tightened the money supply and the stock bubble burst ruining investors large and small who had overextended themselves. As the market unravelled and panicked creditors began calling in debts, the Fed intensified the pressure and constricted the money supply even further causing a wave of defaults and bankruptcies that would cripple the economy and precipitate a recession that would morph into the Great Depression. Thousands of commercial banks would fail between 1929 and 1933 conveniently concentrating the banking system further into the hands of the international bankers.

FDR

The New Deal

Franklin Delano Roosevelt was elected as President in 1932 campaigning to reduce government spending, reign in the big banks and put America back on track economically after the devastation wrought by the Great Depression. He lied. FDR and his “Brain Trust” used the economic crisis as the pretext for a colossal expansion of government in the form of “The New Deal”. The program was a predictable failure for the economy, with evidence showing it prolonged the depression and savaged the rights of citizens. However, it was an immense success for the banking cartels and their industrial interests which gained even more wealth, power and control over the economy.


The War Powers Act of 1933

In 1933 FDR declared emergency powers giving the Federal (especially the Executive) and State governments sweeping new powers to feed off the citizenry. The Act essentially declared the nation bankrupt and under receivership to the international bankers. The Republic was also brought under a soft form of Martial Law (Martial Rule) accelerating the journey to leave the Republic without form or substance. At the urging of the international bankers that controlled the Federal Reserve System, FDR declared the banking system in crisis allowing them to dig themselves out of a hole they had created and put the citizens in their stead.

Gold Grab

As a result of the Great Depression which had also been felt in Europe, governments on the continent which held substantial quantities of US gold-clause notes began exchanging them for physical gold. The US government had set the price at $20.67/oz but this was beginning to rise as demand increased during the depression. The Fed fearing a gold run on its woefully insufficient supply devised a simple plan to avert a disaster they themselves had created. They would steal it.

In order to “save” the banking system FDR signed Executive Order 6102 in 1933, banning private gold ownership and holders were ordered to deliver most of their gold to Federal Reserve banks in exchange for $20.67/oz (equivalent to about $1,700 today) at which the government set the price of gold. “Hoarders” were subject to imprisonment and ludicrous fines. After most of the public turned in their gold the FDR administration raised the government price of gold to $35.00/oz devaluing the currency by nearly 70%. Insiders and the banking elite holding gold-clause Federal Reserve notes naturally made a killing while the public took the brunt of the attack in the massive wealth transfer.

A Traitor to his Class

FDR on both sides of his family had a long history with the Wall Street banking houses, he himself having worked as a banker in the 1920 ́s. Many of his administration’s policies greatly benefited the international bankers and their interests however, some actions were not well received by the Wall Street crowd. The Glass-Steagall Act of 1933 signed by FDR effectively separated investment and commercial banking, and prevented banks from making investments with their customers ́ deposits. This Act was a major restraining factor preventing the banks from becoming the megabanks of today.


THE BANK OF INTERNATIONAL SETTLEMENTS (BIS) After the devastation of World War II, it was all too easy for the banking cartels to offer “financial assistance” to grateful political leaders in the form of private central banks to help nations get back on their feet while the controlled press praised the debt enslavement as liberation.

In Basel, Switzerland in 1930 the banking cartels established a central bank for central banks called the Bank for International Settlements. The bank and its operations are totally immune to Swiss laws and taxation even operating its own police force. The new bank was privately owned (as were the member central banks) and was to be the apex of the global financial system, controlled in a feudalist fashion by the financial elite whose goal was to dominate the political system of the individual nation states and the global economy as a whole. The Bank coordinates the monetary policies of the member states and currently meets every other month.


THE BRETTON WOODS SYSTEM

ESTABLISHMENT In July 1944, a United Nations Monetary and Financial Conference was held in Bretton Woods, New Hampshire to rearrange the world financial system in the postwar world. It was attended by representatives of 44 states. An allied victory in the war looked very likely and the international bankers were eager to begin creating a postwar economic world order. The conference produced the Bretton Woods System that pegged the value of participating nations currencies to the US dollar, which itself was pegged to the price of gold, fixed at $35/oz. Under the system the world's gold reserves would be concentrated in the Federal Reserve System, while the other nations would keep the US dollar as their reserve. This made the dollar the de facto world reserve currency. America was the only viable option for such a program as Europe had been devastated by the war and the Republic was seen as a safer storage location, holding an estimated two-thirds of the world ́s gold. The gold was to be controlled by the Federal Reserve and the international bankers that run it.


ITS COLLAPSE AND THE END OF THE GOLD STANDARD The international bankers controlled the global financial system in the postwar world through their control of the world gold reserves and the US dollar via the Federal Reserve and the International Bank of Settlements. However, the US dollar was still pegged to gold limiting the amount of fraudulent currency the bankers could issue. By the early 1970s the fixed rate exchange mechanism was breaking down because gold was undervalued at the fixed rate and foreign governments were redeeming their dollars for gold depleting their reserves. The Nixon administration buckled under the pressure and unhinged the dollar from gold in 1971, essentially making it a fiat currency. The price of gold skyrocketed on the open market as the dollar devalued. The bankers were now issuing currency with nothing backing it up. However, due to the Republic's international trading status and military might, demand for the currency was still far higher than others enabling it to maintain its reserve status. The Nixon administration also set up the Petrodollar Recycling System that saw the US provide military security to Saudi Arabia in exchange for trading oil in dollars and invest the profits back into the Republic. OPEC soon followed suit. It was the birth of the petrodollar.

However, history has shown us that fiat currencies never survive and eventually revert to their intrinsic value, zero.


PART 3: MANIPULATION AND MASTERY “The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending

power of the Government and the buying power of consumers. By the adoption of these principles, the

taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of

humanity”

Abraham Lincoln, 16th President of the United States of America

GOVERNMENT DEBT BANKING OVERLORDS The banking cartels seek to saddle a targeted nation with debts that are beyond their ability to repay. The national debt creates a burden on the citizenry who are obligated to pay it off through their taxes. An increasing tax burden leads to a reduction in disposable incomes which could otherwise have been employed in productive activities that bolstered the economy and standard of living. This scenario ensures that the governments are beholden to the controllers of the purse strings and prospective government officials must seek their approval in hopes of being elevated. Throughout history the international bankers have sought to finance governments and ensnare them into a debt trap that is difficult to escape. This has been done in collusion with the governing class or in spite of their resistance. The bankers are well aware of the time-value effect can have on a nation's rulers. Take for example the king of a country wants to build a new church in his capital but is short the funds for the project. He is presented with the following options:

A) Introduce a new temporary tax to pay for the church.

B) Borrow from a private bank at interest.

Under both options the church is built, but under option B our king has to pay for both the construction of the church and the interest incurred on the loan. Ideally, our king should just tax his subjects for the church, saving the taxpayer money. However, there are often mitigating circumstances that impinge on the king's decision.


The king may not want to face the backlash of instituting a new tax on his subjects to pay for the church, or he may be worried that the staggered collecting of such a tax may hinder an acceptable construction schedule.

The private bankers meanwhile make their case, arguing that the king need not face uncertainty and social unrest when he could simply borrow the money, negating the need for an immediate tax raise. The king can have his cake and eat it too! The construction could proceed unhindered however, the king must pay interest on the loan, increasing the burden on the taxpayer in the long run. While option A may be fraught with inconveniences, it has the lowest burdens on the taxpayer but all too often the king is enticed by the instant gratification of the loan and the delayed consequences of its payback. All money paid to the bankers is derived from the taxpayer to begin with so the only winners under option B are the bankers. The bankers take advantage of the short-sighted nature of people to gain their profit.

If you pull up the national debts of most countries you will find substantial sums owed to the private international bankers. The governing class are dependent on the continual flow of credit from the bankers to fund their governments and prevent economic slowdowns that could cost them elections (if those are even available). If uncooperative leaders balk at the bankers' predatory lending practices, they would simply fund their political rivals or hostile foreign governments and foment wars and revolutions to ensure more cooperative leadership is installed. This is how national leadership is kept in line and the bankers will spend lavishly to ensure that their preferred candidates are always in positions of power. Soon the political system becomes about who is most favored by the banking elite, who then present a carefully chosen set of candidates to the citizenry come election time.

CORPORATE RAIDERS In a typical loan scenario, a borrower puts up some collateral at the insistence of the lender in the event the former defaults on their obligations. This is practiced on a governmental level as well. The private banks will issue loans to national governments and when the loans are defaulted on, the bankers and their business interests will acquire valuable state-owned assets such as electricity and water companies or mining and telecom operators under the guise of “privatization”. This is an international practice but is most prevalent in developing countries where government officials are often bribed to take on loans the nation cannot afford to repay, to create a pretext to pick up valuable and often critical assets and infrastructure at a fraction of its market value. In such cases the government and its people are indebted to the private banks and stripped of their most valuable assets, essentially making them a de facto colony, where the resources are siphoned off to offshore corporate fiefdoms.


China and the CCP have been leading the charge on this front in recent years. The regime, in their quest for global geopolitical supremacy, launched the Belt and Road Initiative (BRI) in 2013 to create strategic infrastructure, trade routes and relationships with nations across the globe. However, a result of the program has seen developing nations saddled with unsustainable Chinese debt, thereby making them more dependent on the homeland. The predatory lending practices of the CCP have already enabled the regime to acquire strategic infrastructure such as ports on important sea routes in nations like Sri Lanka. Africa especially has been a major target; no doubt due to its vast mineral resources, extensive cultivable land and indebted and corrupt governments. The CCP is slowly ensnaring vulnerable nations in debt traps while gaining ever greater control of their governments. The CCP had simply adopted and customized the IMF blueprint for taking over a nation through debt, which was leaked to The Guardian in 2001, and colloquially known as the “IMF Riot”. It’s called globalism. It's called corporate colonization. It’s called economic conquest in the 21st century.

CORPORATISM The advent of the corporate entity created a vehicle for investors to use and undertake business ventures and operations while at the same time being shielded from full liability for actions of the corporation. The history of the corporation is a study of power and influence. From the imperial conquests of the Dutch East India company to the ruthless labour practices of Apple, the corporation exists to enrich its shareholders at the expense of human dignity if the owners so wish it. Corporate power has grown to the state that if you pull up the global top 100 economic entities by revenue the majority of them are corporations. They rival nation states or some may argue have become states unto themselves. As Abraham Lincoln once feared “corporations have been enthroned” and they will often pursue their interests in pathological and psychopathic fashion. Major studies have found that as many as 21% of CEO´s have “clinically significant levels of psychopathic traits”. This should hopefully surprise no one who takes a minute to think about who would most likely rise to the top in a corporation that callously pursues its goals.


The economic corporate giants command wealth and power that infiltrates the halls of government and often steers policy makers into actions that benefit their wealthy backers and in doing so ensure that their campaign coffers do not run dry. Corporate lobbyists congregate around the seat of the nation's power, corrupting the very nature of government being for the people and by the people. In America’s past, corporations used to be only sanctioned by the government if their operations were for the public good, enabling many beneficial public work projects to be undertaken. However, the major restrictions were successfully removed by administrations of both parties over the years, allowing the robber barons to wield great power and influence and none more than the private bankers who controlled the most powerful corporations of them all.

The international bankers have used their incredible resources to acquire stakes in giant business concerns in most major industries, from Big Tech to Big Pharma. The bankers love cartels in different shapes and forms that enable them to stifle their competition. Monopolies are the ultimate form of market dominance and these can only be created by governments. The bankers use their government agents to pass legislation and regulation that strangles competition allowing their own business interests to flourish. Giant corporations love bureaucratic and heavy regulations in place that their fleets of lawyers can easily navigate through while the small and medium sized enterprises (SMEs) drown in paperwork and bureaucracy. It is frequently in the news cycle how megacorporations often pay a relatively miniscule amount in taxes because of how the tax codes are written. Corporate lobbyists infect national capitals ensuring such practices continue.

Government can also be used to drive companies out of business more directly. An example of this is the Obama administration push to bankrupt the coal industry with crippling CO2 emission limits that drove many companies under. Then predictably, agents of the banking cartels like currency speculator George Soros swooped in and bought up the wrecked companies.

The bankers are looking to create monopolies and oligopolies were possible to control entire industries. The very idea of a free market is anathema to the control freak bankers. The prosperity and choice created by the free market is a direct threat to their control system so they specifically target such markets with the power of the state to protect their interests. We can see this today in the targeting of cryptocurrency by major governments who want no rivals to their monetary systems unless it is totally controlled opposition.

A level playing field in an economy run by the international bankers is nothing more than a delusion.


INFLATION, DEFLATION AND THE BUSINESS CYCLE The control of the money supply by the private bankers is one of the most powerful tools in their arsenal. By increasing the money supply (inflation) the bankers can create booms in the economy which spur spending and investment, that will lead to price rises in popular asset classes. The central banking system can also lower the interest rates so that people are discouraged from saving and instead seek out greater returns in investments. Controlling the money supply and governments also enable the bankers to ensure that their interests receive the most capital, at the best terms, greatly expanding their influence and power.

In the inflationary boom years the cheap money made available will inflate the stock market and speculative assets such as property. As price levels rise in these asset classes the insiders get in early and ride the wave all the way to the top taking as many opportunists with them. At the market ́s peak when a critical mass number of speculators have jumped into the overpriced market, the insiders cash out and purposely crash the market by tightening the money supply causing the artificial bubbles to deflate. The results of monetary deflation that follow are not pleasant for the suckered investors and speculators, as it shatters the illusion of prosperity the inflationary monetary policies caused.

The economic hardship caused by bubbles bursting usually results in falls in asset prices and consumer confidence, business failures etc. which can be exacerbated by the central banks tightening the money supply, leading to more loan defaults. The insiders who exited the market before the crash are now well positioned to buy up valuable assets at discounted prices, further consolidating their wealth and power.

These practices help create cycles of prosperous years and depressionary years which fluctuate with the normal human economic behaviour, where people tend to spend more when consumer confidence is high and money is cheap.


The private banks through inflationary monetary policies and low interest rates can help create a market environment where consumers are encouraged to spend and invest over saving because of the poor returns offered by the banks on the latter. This can lead to a misallocation of resources by investors and businesses who may choose to take on capital projects that look attractive in such an environment, but prove to be unfeasible when interest rates rise and the money supply is tightened.

A prominent example is the decline of the U.S construction industry as the subprime mortgage market began to implode during the financial crisis in 2007-08. The boom years led to over investment and ambitious capital projects undertaken by various firms in the cheap money, rising asset price environment only to have those projects fail when asset prices collapsed and the credit supply dried up. An estimated 780,000 construction jobs were lost between September 2006 and December 2008 alone.

For the consumer during this period it was the taking on of mortgages for overvalued assets that often saddle them with considerable amounts of debt. However, in a low interest rate and “booming” environment, paying down their debt was more often than not a manageable task. Unfortunately, the predatory banks in too many cases deliberately sold poorly qualified customers mortgages with variable rates that were manageable when rates were low, but payments skyrocketed when interest rates were raised. These junk mortgages were often bundled in deceptive “financial instruments” and sold to unwitting investors worldwide, thereby “absolving” the bankers from any responsibility. In the fallout of the crisis more than six million homes were foreclosed on between 2006 and 2016.

Human economic behaviour has characteristics of a herd mentality which leads to people to pile onto market trends causing natural boom and bust cycles. The private banks deliberately tamper with financial markets and the money supply to exacerbate boom-bust cycles. They create overconfidence and encourage speculation and investment, then ruthlessly inspire uncertainty and panics to control and steer the natural cycles of societal behaviours.


PART 4: DESCENT INTO SLAVERY “The establishment of a central bank is 90% of

communizing a nation”

Vladimir Lenin, 1st Leader of the Soviet Union


THE ROAD TO CHAINS WEALTH CONSOLIDATION The goal of the banking cartels is to continually increase the profits and the wealth of its private shareholders and in doing so make all other parties subservient to the financial elite. Through artificial boom-bust cycles the bankers are slowly consolidating the world economy into their hands. The bankers through their debt based monetary system are transferring the real wealth of the planet into corporate and government combines under their control. Their international monetary system enables them to reap the benefit of mankind ́s efforts, labor and genius in exchange for a paper fiat currency backed by absolutely nothing but faith. It is the greatest deception in history. The private banks produce nothing productive but fraudulent instruments and elaborate schemes designed to enrich themselves on the sweat of others' labor.

Over a decade after the financial crisis of 2007-08 the “too big to fail” banks are larger than ever. They have consolidated their power position and have had the public absorb the wreckage of the crisis they helped create. In the wake of the coronacrisis the global economy is dependent on them now more than ever before, and if history is anything to go by, that does not bode well for the average person. The bankers use the same tricks over and over again because they work! If unhindered they will persist with their boom-bust strategy and grow ever richer and powerful, until they are unable to be reined in by any government. The megabanks are dependent on your productivity and confidence in them to sustain their wealth and power but simultaneously want to limit your ability to be prosperous lest you unbalance the stability of the economic class system. This road leads to a bifurcated society of the haves and the have-nots, something not new in history. Thomas Jefferson laid it out best when he warned what would happen to his precious Republic if the private banks had their way.

If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

From the Republic’s very inception the body politic had been in a continual struggle to prevent the banking cartels from gaining too much power and influence. Those attempts unfortunately have failed and “too big to fail” is the result. Luckily, the struggle is far from over, though time grows short as the Republic slides deeper into a bottomless pit of debt.


CURRENCY DEVALUATION The central banks have turned on the printing presses worldwide. The biggest offenders are the People's Bank of China (PBOC), U.S. Federal Reserve, European Central Bank and Bank of Japan. The central banks have printed trillions in currency and are on course to print trillions more. It is a race to the bottom. Inflating a currency acts as an invisible tax that only one in a million will notice, as economist John Maynard Keynes once said. Since the establishment of the Federal Reserve System in 1913, the US dollar has lost over 96% of its purchasing power. Like the frog in the pot, the citizenry is largely unaware that the value of their currency is being gradually eroded by the monetary policies of the central banks. The bankers are now coming for the rest of those percentage points with their excessive money printing.

The poorest in society are usually hit the hardest by such practices. Real wage growth for many American jobs has remained stagnant since the 1960s. Americans have seen bigger paychecks but the purchasing power of their dollars has barely budged in that period. With the excessive money printing of the central banks today the lowest income classes will see their paychecks stretch less and less in the future, and those on fixed incomes will also struggle. We can already see the effects of inflation with pensioners, who are retiring in increasing numbers to destinations like Ecuador and Portugal because they are being priced out of their home country.

While all central banks manipulate the value of the currencies to varying extents, some are bigger offenders than others. China for years artificially undervalued their currency giving them a huge advantage in exporting their goods. Whilst the practice has helped make the nation a manufacturing powerhouse it has simultaneously created huge bubbles in many sectors of its economy; most notably in banking and construction. All bubbles eventually burst and the bust cycle of China's decades of overall boom is soon coming to an end especially in the wake of the coronacrisis. And the fallout could be earth shaking. Expect to see rapid consolidation of wealth as the collapse accelerates and the CCP and its banks attempt to contain the inevitable with bailouts and buyouts; which have already begun heavily in the banking sector and local governments.

Currency is supposed to be a store of value and a medium of exchange to help facilitate trade between parties. Instead the private banks have masqueraded their false currency as the real deal and used it as a wealth transfer tool from the productive to the parasitic. The currency today is debt. It is a debt to the private banks, tethering down the citizenry to a life of economic servitude.


THE TAX RACKET The bankers use similar tactics with gradual tax increases that seek to lessen your disposable income and pay off government debts. Governments use their citizens current and future taxes as collateral for their bank debts and will gradually increase their taxes over long periods of time to boil the citizen-frog in the pot so that they don't realize they are being cooked. Debts which are designed never to be paid, essentially making the citizen and their progeny perpetual debt slaves. Most major countries´ debts are so large that paying the interest alone presents a significant enough challenge, let alone paying the principal.

In reality, taxing the citizenry has very little to do with paying off the fraudulent debts of the megabanks and more to do with decimating the disposal income of the citizen and robbing him of the options and freedoms that come with it. Chief Justice of the Supreme Court, John Marshall (1775-1835) once said “the power to tax is the power to destroy” and the bankers actions have put the very freedom of the citizen is at stake. The state will always invent more taxes to throw into the debt black hole, whilst your rights will be taken through the back door. Take for example, property taxes. The very idea of private property is enshrined in the enlightenment values the Republic was built upon, but due to the indebtedness of states citizens are levied a tax on their private homes, that if not paid will eventually see them lose it to the government by force. This tax makes people renters and not owners of their own homes. A right hard won and lost to the taxman and the unsatiated private banks he unwittingly serves.

The financial elite’s influence over policy makers often ensures that tax codes are designed to largely exempt their class from the burden of taxation, ensuring the weight falls on the less fortunate income classes. In feudal Europe taxation was used to suppress the peasant class and protect the dominance of the nobility. A practice which has continued through the ages. Interestingly, if one studies the history of income tax in America you will discover that the first income taxes were imposed by the Lincoln administration to finance the Union's war effort during the Civil War. There were only two tax brackets and citizens were taxed at 3% and 5%. The law was repealed under President Grant in 1873 after mounting pressure from the citizenry. The first income taxes during peacetime came in 1894 and only applied to the top one percent of society who were taxed at 2%. The tax was repealed in 1895 when the Supreme Court found it unconstitutional and discriminatory against people who earned above the threshold.

Today, Americans are taxed progressively and the Federal income tax rate can reach 37% for the top bracket. In the Incan empire the peasant class were required to only give 33% of the entire efforts to the governing priest class. Lower taxes mean more disposable income for the individual which they may spend as they see fit. It could go to spending in the marketplace, boosting businesses or investing in your business and hiring more people, growing the economy. Instead the taxes go to pay the fraudulent debt concocted by private banking cartels.


Taxes are a suppression tool used to protect the new priest class that is the financial elite as they practice “finance” in their high-rise banking temples.

BANKING SCAMS THE ART OF THE CON Today´s private megabanks are out of control. The bankers believe themselves above the law and it's hard to argue with them. Very few bankers have been convicted of clear cut and public crimes and no major banker has seen any jail time. Predictably, in such an environment the megabanks are running dozens of scams that are generating billions in profits while fleecing their own clients as well as the public at large. The criminal operations run by some of these corporations have far-reaching consequences on society and directly contribute to the decline of civilization. Their crimes are legion but the following are a few choice examples of the parasitic behaviour of the banks and their utter contempt for their clients.

CARTELS AND CARTELS In 2006 the US Drug Enforcement Administration (DEA) conducted a 22-month investigation into one of America's largest banks at the time, Wachovia, after a drug-filled jet owned by the Sinaloa drug cartel was intercepted by Mexican authorities. Wachovia was later acquired by Wells Fargo during the financial crisis in 2008. The investigation revealed that billions of dollars were being laundered through Mexican currency exchanges via traveller's cheques, wire transfer and cash, directly into Wachovia accounts. A criminal case was brought against the bank as a corporate entity but not a single individual at the firm was charged. The federal government sanctioned the bank for not applying anti-laundering procedures on transactions to the tune of nearly $380 billion. In less than two years. So, what was to be the punishment for helping finance and launder billions of dollars for a violent, murderous drug cartel you may ask? They settled out of court in 2010 and paid fines totalling $160 million. That’s it.


The fine was less than 2% of the bank's profit for the previous year. If you were wondering where drug cartels kept the billions they made in their nefarious line of work, you have your answer. In your local bank!

The megabanks can launder billions in drug money and walk away with a slap on the wrist. You, on the other hand, are considered suspicious by federal authorities if you deposit more than $10,000 in cash. This is likely just scratching the surface of the relationship being international banking cartels and the global drug cartels but at least the old cliché proved true…follow the money.

ATTACK OF THE CLONES The previous criminal operation segues nicely into this next scam as it deals with Wells Fargo, one of the planet's largest banks. A years long scandal began to unravel at the bank in 2016 when it was revealed that Wells Fargo employees were opening duplicate accounts for thousands of their clients without their knowledge or consent and charged them banking fees. The bank said it uncovered over 3.5 million fraudulently opened accounts affecting nearly 200,000 clients in their global network. The scandal caused a public outcry and the bank fired over 5,000 employees as a result, blaming “unrealistic sales targets” for their staff engaging in criminal behaviour.

In 2018 Wells Fargo agreed to pay all 50 states in the Union a combined $575 million settlement in addition to a further $142 million for the defrauded customers. The insurers of the bank´s executives and directors also settled and agreed to pay it’s US shareholders $240 million in March 2019. Predictably, no one at the bank went to jail over this massive and wide-reaching fraud and the executives denied any wrongdoing on their parts. Now, this is just speculation but a years long scam of creating fake accounts, involving thousands of employees and not being noticed by management stretches credulity. This whole scam has the feel of being top-down directed but hey, maybe the executives are telling the truth and they are totally incompetent at their jobs. It’s always possible.

A WORD FROM BUFFET Maybe the “Oracle of Omaha” Warren Buffet can shine some light on the conduct at a bank where his firm, Berkshire Hathaway, is the largest shareholder. Afterall, Buffet has a great track record in investment and his all ethos is about picking firms with good management. Buffet advised the firm that they had to be “very careful on what you incentivize” and to more closely monitor the ethical behaviour of the employees.


Not exactly an illuminating insight but the fines hardly put a dent in the bank ́s portfolio or his, especially seeing as Berkshire Hathaway holdings were the largest recipient of the $700 billion Troubled Asset Relief Program (TARP) bailout. A legislation he heavily campaigned for in the press. And why not? He clearly benefited from helping “save” the economy. The investment genius also warned about the dangers of the set of financial instruments called derivatives, that played a central role in the financial crisis, calling them “weapons of mass destruction” in a 2002 annual report to Berkshire Hathaway shareholders. However, Wells Fargo had over $11 trillion of derivatives exposure in Q1 2020...maybe we should take advice from another “genius”.

HSBC AND THE DRUG CARTELS Wachovia wasn’t the only bank to be caught laundering drug money for Mexican cartels, HSBC shares that lofty honour. In late 2017 the British corporation settled with the US Department of Justice (DoJ) and agreed to pay a $1.9 billion dollar fine for facilitating the laundering of $881 million in drug money through two of its branches in Mexico and Colombia in the last half of the preceding decade. The drug dealers it was reported would deposit hundreds of thousands of dollars a day in cash into a single account without any flags being raised. But don't worry the bank also agreed to invest heavily in “compliance systems” that would prevent future relapses.

In this case the fines were actually in excess of the amount the bank was charged with laundering, but as you have probably guessed by now not a single bank executive faced any jail time. The fine wasn't even 10% of the bank's income for the year, making this no more than a slap on the wrist or a get out of jail free card depending on who you ask. The bank fines for laundering drug money are proof that the US “war on drugs” is nothing more than a façade.

THE FIX IS IN: THE GOLD AND SILVER PRICES In April 2016, Deutsche Bank settled U.S lawsuits that it conspired and collaborated with other banks to rig the prices of gold and silver. Markets worth tens of billions in trade annually and Deutsche Bank admitted to helping rig these markets. Large private megabanks working in secret to rig precious metal markets is what happened. The very definition of a conspiracy and there is no theory about it. It is a solid fact. Banks like UBS, Barclays and Canada´s Bank of Nova Scotia were all implicated in the scandal, with some paying paltry fines.

The lesson to take away? Private banking corporations can put to bed almost any gargantuan criminal case against them with a fine to the relevant authorities and temporary bump in PR spending.


BANKER BAILOUTS

The megabanks have created trillions in financial instruments that they want the citizenry to pay for and they will. In the wake of the 2007/8 financial crisis the bankers got governments to bail them out with taxpayer money. The Federal Reserve bailout commitments were an estimated $29 trillion according to a 2011 study out of the University of Missouri-Kansas City. $29 trillion! That is a sum larger than the GDP of the entire nation! The bankers took trillions of dollars backed by the US taxpayer and gave it to themselves and their allies. This may be the greatest theft in human history! But since the banking cartels controlled the Obama Whitehouse not a single major player in the megabanks faced any jail time.

Have the banks changed their ways since that crisis? Absolutely not. And why should they? Not only were they bailed out for their “recklessness”, they were essentially given carte blanche to do as they like going forward. So, they did. The banks have created trillions more in fraudulent debts and have had governments sign onto them. So, when the next crisis inevitably came around the taxpayer footed the bill again. In the wake of the COVID-19 pandemic the new round of bailout commitments totalled more than an estimated $6 trillion! This is the debt trap we have been ensnared in. Here is the little secret…the debt is impossible to pay back, impossible.


The bankers create the fiat currency out of thin air and loan it to governments at interest. It is impossible to pay back a loan with interest when the creditor creates the very currency it must be paid back in. You could pay the principle but never the interest. The system is designed to impoverish you and your family. It is designed to put you at the complete mercy of the banking cartels and they have made it clear that no quarter will be given.

ENDGAME: NEO-FEUDALISM AND TECHNOCRACY LOGICAL CONCLUSION The private banks that control the nation's money supply have embarked on a course that makes them the most profit in the most straightforward fashion. Unfortunately, for the average person this often means getting conned and having your wealth diminished by the financial elite. The economic trends in our society have never been clearer. The world's wealth is consolidating into the hands of a few people and families at the apex of our society. This is not a new phenomenon but a common trend seen throughout human history. Wealth and influence congregate around power and the new power in our society are the private banking corporations, who through their debt-based monetary system command untold resources to achieve their aims. These aims being more profits and influence over the governing of our society. We have already established that the financial elite often find themselves immune to the laws of mere citizens, allowing them to engage in criminal activity with near impunity. But, where does all of this lead? History must be our guide as humans tend to act the same through the ages often creating discernible cycles.

The banking elite’s power affords them the privilege of looting and plundering the global citizenry with little consequence, so more of this type of behaviour is exactly to be expected from this parasitic class. Just as the tick sucks the lifeblood out of its target, the private bank will drain a productive nation of its ability to produce wealth until its populace is reduced to a serf status. For those of you doubting such an outcome take a look at the value of the US dollar since the institution of the private banking cartel that is the Federal Reserve System, hijacked the monetary powers of Congress and began its issuance of fraudulent debt enslaving instruments; the dollar lost more than 96% of its value! Real wages in the Republic have been stagnant for many Americans for several decades and tens of millions stand employed. Is this a society in an upward trend? Or is it a society struggling to hold onto the last vestiges of prosperity? A society so desperate that despite his many faults chose to elect a President in the form of Donald J. Trump with a pro-business, pro-middle America stance in an attempt to arrest the slide into mediocrity. America is no longer the meritocracy envisioned by Jefferson but an oligarchical plutocracy envisioned by Rockefeller, where big finance reigns supreme and all else are left in their wake.


TECHNOCRACY Technological developments of the 20th & 21st centuries have been exponential and enabled humanity to be propelled into the final frontier that is space. The race for the latest technological innovations now happens on a global scale causing nations and private corporations to invest more into R&D to get ahead of the curve. Google, Apple and Amazon are racing and collaborating with the American and Chinese governments toward true artificial intelligence (AI) that could propel the civilization to the next stage, blurring the lines between government and corporate. The future is here and the old rules are being rewritten.

Private firms due to developmental trends are outstripping the performance capabilities of governments in critical areas such as AI, creating the need to rethink the way in which government business is conducted. Microsoft for example is taking over the cloud computing systems of the Pentagon to increase efficiency and effectiveness. Technocracy is government by experts but not all experts have a solid moral standing.

The private bankers in their field of “expertise” have wrought destruction and disruption to the global economy. Through their organs they argue for greater global centralised control through interlocking private central banks and organizations like the IMF and the World Bank. Centralized systems are subject to the whims of their controllers, so the megabanks support such systems to enable them to maximise their profits and pursue their goals. Decentralized and uncontrolled systems are often met with hostility and resistance from this parasitic elite class which is why there is a war on cash and cryptocurrencies.

Cash, while it is part of the debt-based system run by the megabanks, can be used anonymously and taken out of circulation, which is a threat to the banking system. In future crises, where the banks may have to “bail-in” (steal money from depositors’ accounts) like they did in Cyprus and Greece, this would be impossible to do if a significant number of people held cash outside bank accounts. Creating a cashless society would also prevent runs on banks which would typically only have about 2% or 3% of cash in reserve. In India, during 2016 the central government banned the two highest denominations of its currency, essentially removing 86% of the cash in circulation out of the economy in an attempt to fight the scourge of “black money” and “corruption”. Regardless of the reasons for such a move, the Indian banking system is now much less vulnerable to panicked runs on its banks due to the greater concentration of currency in its vaults. In nations like Sweden, Finland and Denmark digital payments make up 90 plus percent of total transactions and are on the fast track to becoming cashless societies.

With ever greater centralization happening in currency many people worldwide are looking for alternative stores of wealth as both an investment and a hedge against uncertain times.


SURVEYING THE BATTLEFIELD Private banking corporations have become enthroned and are now the dominant power in our society. Many of their class have gotten away with a multitude of crimes and perceive themselves as the new untouchable aristocracy or perhaps more fitting, the new priest class. In the words of former Goldman Sachs CEO Lloyd Blankfein the private banks are only doing “God's work” and after all, according to the ECB's Governing Council member Vitas Vasiliauskas the central bankers are “magic people”. However, history has also shown us that pride cometh before the fall and the hubris of the elites will be their undoing. The knowledge of bankers’ criminality is spreading amongst the global populace and resistance to their tyranny is in the ascendance.

The elite have even more to fear within their own ranks as the fruit of their works becomes more manifest and as worldwide economic turmoil turns insiders against them. The inevitable power struggles to come will see factions vie for supremacy possibly destroying their class position as a result. For the public the choice is clear. Resist and overcome the machinations of the parasitic bankers or be steamrolled and consigned to the dustbins of history. The financial elite think they hold an overwhelming advantage, and seeing as they have rarely been held to account, do not expect any quarter from them. But I for one am betting on humanity because for all our faults we built this entire system with our ingenuity and our drive; and if conscious of our current predicament we can just as easily destroy it. The centralizing tyranny of the private banking cartels is not as inevitable as they would have us believe. A conscious resistance and diversification into people-empowering alternatives can shatter their control paradigm and usher in the opportunity for a new renaissance. Not some flowery utopia promised by demagogues, but the freedom to pursue our own destiny, free from the oppression of the parasitic banking cartels.

RECESSION PROFIT SECRETS : MODULE 1 2

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Transcript of RECESSION PROFIT SECRETS : MODULE 1 2